A Taxing Situation

As I mentioned Tuesday, the market has a tendency for at least one good bout of profit-taking as the year winds down. While some folks tend to focus on harvesting tax losses, others think it's better to lock in gains and not worry about deferring taxes.

Far too often, market players cost themselves big money trying to save a few dollars in taxes. My experience is that it is generally better to take profits when the charts suggest you should, rather than wait to save some tax money. Fortunes have been lost holding on to stocks in an effort to defer taxes, and I don't want to play that game.

At this point, this market is so thin and so random that I see little to do. I still like some of the small oils like Magnum Hunter Resources Corp. (MHR), but I'm in no rush. I'm just going to stand aside and watch for now.